In this article we’ll explore the question of applying for large business loans, what criteria the lenders might be looking for, and how to give yourself the best chance of success.
Understanding Large Business Loans
Applying for a larger loan means you can access better rates, though they can be more difficult to obtain. Larger business loans will always be secured – meaning they require collateral or security – usually in the form of a substantial asset.
It’s important to remember that if you can’t pay back your loan, the lenders legal ‘charge’ over the asset you sign over means they can sell it to get their money back. As such, business finance should always be taken out with a full understanding of the risks and fees attached.
Can you Get an Unsecured Large Business Loan?
Many business lenders purport to offer ‘unsecured’ loans while insisting on a director’s personal guarantee. While this means the loan is not secured with a business asset, it is still secured and, in the event of default, the director’s personal asset will be forfeited. As such it is something of a misnomer to offer unsecured loans in this fashion. A truly unsecured loan is one that does not require collateral.
What’s the Maximum Business Loan Size Available?
In theory, there’s no maximum size for business loans. While the lending panel reduces in size as the amounts increase, it is usually possible to find someone to lend even 100s of millions where the loan security is adequate, the exit strategy compelling, and the business profitable enough. This is where the contemporary alternative lending market really excels because specialist providers exist to deal with very specific circumstances and business types.
If you’re seeking a large business loan specifically for short-term property finance or development finance it’s worth enquiring to see if we can match you with the right lender. Our service doesn’t cost anything, will never mean you get rates any different to had you applied to the lender directly, and is completely free of obligation.
Large Business Loan Calculator
Every business has its own particular set of circumstances, meaning the best option is to simply discuss your situation with us to ascertain the ‘in principle’ rates a lender is going to offer.